The federal government is considering imposing extra charges on all cash purchases, including petrol, in the upcoming 2025–26 budget. This move aims to discourage cash transactions and promote digital payments. According to FBR sources, these proposals will be included in the Finance Bill to curb tax evasion and encourage transparency in the economy.
A major proposal under review is charging up to Rs3 extra on petrol purchased with cash. Authorities believe this step could help control tax theft and fuel adulteration at petrol stations. To support this change, petrol pumps will also be encouraged to install systems for digital payments like QR codes, debit/credit cards, and mobile apps.
Additionally, manufacturers and importers may be allowed to charge an extra 2% tax on cash sales. FBR officials said several meetings have already been held with the corporate sector to ensure this plan is practical. Shops may also face extra taxes on cash sales. However, restaurants that already offer card payment options will continue to receive tax exemptions for digital payments.
Sources added that salaried individuals should not expect major tax relief in this budget. Any relief will likely be minimal. The government is under pressure from the IMF to link tax relief with cuts in public spending, and negotiations are ongoing.
Finally, the FBR clarified that buyers will still be free to pay in cash, but they will pay higher taxes for doing so. Manufacturers and importers must apply a standard 18% sales tax on digital payments. These payments must be processed through secure digital systems like QR codes. However, no current plans exist to bring jewelers, wedding halls, doctors, or lawyers into the tax net.